Most people understand that student loans come with interest — which can add several thousand dollars onto the life of the loan, especially if you extend out your payments.
But many people don’t realize that federal student loans also come with origination fees, much like mortgages or car loans, which can add significantly to student debt totals.
The average college graduate now leaves school with $30,000 in student debt, and the national student debt total of $1.3 trillion is rising every day. Many prospective college students don’t realize the huge impact student debt can have on their lives–and how much compound interest can add up over time, resulting in a much larger […]
Applying for financial aid can get confusing.
It can be difficult for families to keep track of all the different types of financial aid available, from grants to student loans.
But this helpful infographic from Southern New Hampshire University makes it a bit easier.
Dealing with the death of a child is difficult enough. But the financial stress of having to repay the child’s student loans can make such a tragic event that much more difficult to bear.
This is a heartbreaking reality for the Mason family, and many others who face the terrible tragedy of losing a child with student loans, according to a recent CNN Money story.
Many of the nation’s top universities, such as Harvard, Stanford and Duke, are lauded for having need-blind admissions policies, meaning they don’t take into account a student’s ability to pay for college when making admissions decisions. These schools say the policy a way to make sure the best students are accepted because of their merit, […]
Sen. Elizabeth Warren (D-MA) says student loan interest rates are ‘crushing’ former students, and something needs to be done. She introduced a plan in March that would let student loan borrowers refinance their loans at lower interest rates. And last week, she filed the bill with the support of 27 co-sponsors. Plan would let borrowers refinance […]
What is student loan consolidation and how does it work?
We love this video from StudentLoanConsolidator.com, which explains the process in a unique way–by using Play-Doh to represent student loan consolidation.
Compared to private student loans, whose interest rates vary depending on the borrower’s credit history, federal student loans are a steal. But according to USA Today, a large percentage of private loan borrowers don’t maximize their borrowing of federal student loans.
In fact, the newspaper found that more than half of private loan borrowers failed to max out on federal student loans, and a quarter didn’t take out any federal loans.
This is quite alarming and demonstrates the need for education about the differences between federal and private student loans. Unlike federal student loans, private student loans can have variable interest rates, some greater than 18%. This substantially increase the total amount you repay.
Repaying your student loans shouldn’t be scary.
Unfortunately, the shady practices of some student loan servicers have got us spooked.
How do I find out how much I owe in student loans? How do I consolidate my loans? Can I lower my student loan interest rate?
This video featuring Money Magazine reporter Carolyn Bigda answers those questions and more. Watch to find out when to start repaying your student loans, what repayment options you have, and how to set up a student loan repayment schedule.